PRESS-RELEASE

(Translation from Russian)

RA «Expert-Rating» confirms the rating of OJSC

«Transsiberian Reinsurance Corporation»

August 8, 2012 the Rating Agency «Expert-Rating» has decided to confirm the financial stability rating of the insurer and the credit rating of OJSC «Transsiberian Reinsurance Corporation» (Russian Federation) at the level uaAAA according to the national scale. Confirming the rating of the reinsurer at the unprecedented high level according to the national scale, the rating committee of the Agency was guided by the activity results of the Company in the first half of 2012.

Table

Key performance indicators of OJSC «Transsiberian Reinsurance Corporation»

according to the results of the 1 half of 2012, mln. RUB, %, p.p.

Sources: Data of the Company, calculations by RA «Expert-Rating»

1. In the first half of 2012 gross business of OJSC «Transsib Re» has decreased by 4,6% compared to the same period of 2011. The Company has collected RUB 311 mln. of gross premiums within the first 6 months of 2012. Due to an insignificant decrease in the business activity of the reinsurance company, its liabilities have decreased by almost 20% down to RUB 607 mln. As a result, the shareholders’ equity/liabilities ratio has grown by 24,11 p.p. up to 103,13% in the period from 30.06.2011 to 30.06.2012, and the liquidity ratio has grown up to 45,96% in the same period. Against the decrease in business activity, the Agency states the fact of growth in solvency and liquidity of OJSC «Transsib Re».

2. According to the reinsurer’s report about solvency in the 1 half of 2012 the actual amount of solvency margin has grown up to RUB 625,548 mln., or by 1,08%. In the same period the deviation of the actual solvency margin from the normative indicator has grown by 4,85%, from RUB 138,833 mln. up to RUB 145,548 mln. Therefore, according to the Agency, on 30.06.2012 the solvency reserve of OJSC «Transsib Re» has amounted to USD 4,44 mln.

3. Net profit of the Company has decreased by 43,75% down to RUB 9 mln. in the first two quarters of 2012. Against the decrease in gross business in the 1 half, there has been a growth of indemnities up to RUB 185 mln., that is by 18,6% more than in the same period of 2011. As a result, volatile dynamics of gross premiums and payments has resulted in the decrease of the financial result from operating activities of the Company down to RUB 58 mln., or by 16%. In the Agency’s opinion, the results of OJSC «Transsib Re» in the 1 half of 2012 correspond to the market trends. The activity of the Company has remained profitable, while against the decrease in profitability of operations, the level of liquidity and solvency has grown. In such a situation the decrease in profitability doesn’t make any impact on the financial stability of the Company.

Analytical service of RA «Expert-Rating»

Confirmation of OJSC «Transsiberian Reinsurance Corporation» (english version) - 08.08.2012